Shenandoah Telecommunications Co · NASDAQ:SHEN
Shenandoah Telecommunications — Shareholder Meeting (April 2012)
31 slides from Shenandoah Telecommunications's shareholder meeting presentation, Apr 18, 2012
Slide 1: Annual Shareholder Meeting
Annual Shareholder Meeting April 17, 2012 Exhibit 99.1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This presentation includes “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our business strategy, our prospects and our financial position. Th
Slide 3: Use of Non-GAAP Financial Measures
Use of Non-GAAP Financial Measures Included in this presentation are certain non-GAAP financial measures that are not determined in accordance with US generally accepted accounting principles. These financial performance measures are not indicative of cash provided or used by operating activities an
Slide 4: Annual Shareholder Meeting
Annual Shareholder Meeting April 17, 2012
Slide 5: Web Maps Shopping Music Video
Web Maps Shopping Music Video
Slide 6: PCS Subscriber Growth History
PCS Subscriber Growth History
Slide 7: Total Change in Stock Price
Total Change in Stock Price Note: Adjusted for stock splits and as of the end of year close.
Slide 8: Total Change in Dividends per Share
Total Change in Dividends per Share Note: Adjusted for stock splits.
Slide 9: Earle MacKenzie, COO and EVP
Earle MacKenzie COO and EVP
Slide 10: PCS Retail Subscribers (000s)
PCS Retail Subscribers (000s) Key Operational Results - Wireless
Slide 11: PCS Net Additions
PCS Net Additions Key Operational Results - Wireless
Slide 12: How Does Shentel's Wireless Compare?
How Does Shentel’s Wireless Compare? 2011 Results (in thousands) Verizon AT&T Sprint Shentel US Cellular Alltel (ATNI) T- Mobile nTelos Covered POPs 296,000 313,000 277,800 46,888 4,500 280,200 5,915 2011 Net Adds or (Loss) 5,419 7,699 5,111 54 .. (186) (10) (1,232) (18) Total Subs 107,798 103,247 5
Slide 13: PCS Gross Billed Data & Voice
PCS Gross Billed Data & Voice Key Operational Results - Wireless
Slide 14: Investing in the Future
Investing in the Future q Keeps Shentel’s network aligned with Sprint’s q Allows Shentel to remain competitive with Verizon and AT&T q Improve customers’ experience q Provide 4G LTE service in entire coverage area q Provide better in building and overall coverage q Gives Shentel potential to leverag
Slide 15: Profile of the Sprint Nextel Relationship - Postpaid
Profile of the Sprint Nextel Relationship - Postpaid q Contract Ø Initial term to 2024 Ø Two 10 year renewals Ø Defined exit value based on DCF q Net Service Fee of 12% (14% maximum): Ø Billing Ø Customer care Ø Long distance Ø Travel/Roaming Ø National channel handset subsidies q Access to Addition
Slide 16: Network Vision - 2012 & 2013
Network Vision - 2012 & 2013 q Plan to upgrade 274 cell sites in 2012 and the remaining 236 in 2013 including: Ø Multi-modal base station at each site Ø Expanded backhaul capacity Ø LTE in the PCS G-block Ø Voice service in the 800Mhz block q Expect to launch LTE as early as Q3 2012 .. ..
Slide 17: Cable Service Areas
Cable Service Areas
Slide 18: Cable Revenue Generating Units (in thousands)
Cable Revenue Generating Units (in thousands)
Slide 19: How Does Shentel Cable Compare?
How Does Shentel Cable Compare? * Industry Averages are from SNL Kagan's estimate of U.S. totals.
Slide 20: Why Cable has a Competitive Advantage
Why Cable has a Competitive Advantage q Issues with the Local Telephone Company Ø Limits of DSL - Is it the new dial up? Ø Requires significant capital investment to offer comparable Ø Loss of cash flow from shrinking voice service Ø Long-term pricing advantages as access revenues decrease Ø Bundlin
Slide 21: Shentel's Cable Advantage
Shentel’s Cable Advantage q We know Telephone - Our primary competitor Ø Needs to spend lots of capital to match our service Ø Unfavorable changes in economics q Own/control our backbone fiber network q Own our telephone switch q Regional focus on small markets
Slide 22: Investing in the Future - CapEx Spending (in millions)
Investing in the Future - CapEx Spending (in millions)
Slide 23: Adele Skolits, CFO and VP of Finance
Adele Skolits CFO and VP of Finance
Slide 24: 2011 Financial Highlights: Net Income
Net Income (in millions) Net Income from Continuing Operating (in millions) 2011 Financial Highlights
Slide 25: Revenues (in millions)
Revenues (in millions) Note: Effective 2007, Shentel amended its agreement with Sprint Nextel. The net effect of this amendment was a reduction in both revenues and expenses.
Slide 26: Mix of Revenues by Quarter (in millions)
Mix of Revenues by Quarter (in millions)
Slide 27: Change in Mix of Revenues
2” SHENTEL Change in Mix of Revenues 1Q 2008 4Q 2011 27% 13%
Slide 28: Expenses by Quarter (in millions)
Expenses by Quarter (in millions)
Slide 29: SHENTEL
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Slide 30: a” SHENTEL
a” SHENTEL $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $0.00 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Slide 31: Annual Shareholder Meeting
Annual Shareholder Meeting April 17, 2012
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